Critical Analysis: Open Text (NASDAQ:OTEX) & Plum Acquisition Corp. I (NASDAQ:PLMI)

Open Text (NASDAQ:OTEX) and Plum Acquisition Corp. I (NASDAQ:PLMI) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Risk and Volatility

Open Text has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Plum Acquisition Corp. I has a beta of 0.02, suggesting that its stock price is 98% less volatile than the S&P 500.

Valuation & Earnings

This table compares Open Text and Plum Acquisition Corp. I’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Open Text	$4.48 billion	2.10	$150.38 million	$0.47	73.62
Plum Acquisition Corp. I	N/A	N/A	-$30,000.00	N/A	N/A

Open Text has higher revenue and earnings than Plum Acquisition Corp. I.

Profitability

This table compares Open Text and Plum Acquisition Corp. I’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Open Text	2.24%	22.99%	5.51%
Plum Acquisition Corp. I	N/A	-17.83%	-0.07%

Institutional & Insider Ownership

70.4% of Open Text shares are owned by institutional investors. Comparatively, 25.9% of Plum Acquisition Corp. I shares are owned by institutional investors. 10.6% of Open Text shares are owned by company insiders. Comparatively, 71.9% of Plum Acquisition Corp. I shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Open Text and Plum Acquisition Corp. I, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Open Text	0	4	4	0	2.50
Plum Acquisition Corp. I	0	0	0	0	N/A

Open Text currently has a consensus target price of $46.25, indicating a potential upside of 33.67%. Given Open Text’s higher probable upside, equities research analysts clearly believe Open Text is more favorable than Plum Acquisition Corp. I.

Summary

Open Text beats Plum Acquisition Corp. I on 9 of the 10 factors compared between the two stocks.

About Open Text

Open Text Corporation provides information management software and solutions. The company offers content services, which includes content collaboration and intelligent capture to records management, collaboration, e-signatures, and archiving; and operates experience cloud platform that provides customer experience and web content management, digital asset management, customer analytics, AI and insights, e-discovery, digital fax, omnichannel communications, secure messaging, and voice of customer, as well as customer journey, testing, and segmentation. It also provides cybersecurity cloud solutions to protect, prevent, detect, respond and quickly recover from threats across endpoints, network, applications, IT infrastructure and data, AI-led threat intelligence; and to protect critical information and processes through threat intelligence, forensics, identity, encryption, and cloud-based application security. In addition, the company offers business network cloud for digital supply chains and secure e-commerce ecosystems including digitize and automate procure-to-pay and order-to-cash processes; IT operations management cloud for automation and advancement of IT support and asset management; and analytics & AI cloud solutions that offers artificial intelligence with practical usage to provide organizations with actionable insights and better automation, such as visualizations, advanced natural language processing and understanding, and integrated computer vision capabilities. In addition, it provides application automation cloud, developers cloud, and services. Further, it has strategic partnerships with SAP SE, Google Cloud, Amazon AWS, Microsoft Corporation, Oracle Corporation, Salesforce.com Corporation, DXC Technology Company, Accenture plc, Capgemini Technology Services SAS, Deloitte Consulting LLP, Hewlett Packard Enterprises, and Tata Consultancy Services. Open Text Corporation was incorporated in 1991 and is headquartered in Waterloo, Canada.

About Plum Acquisition Corp. I

Plum Acquisition Corp. I does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. The company was incorporated in 2021 and is based in San Francisco, California. Plum Acquisition Corp. I operates as a subsidiary of Plum Partners, LLC.